Dividend Investing | Industrials

Space Force Will Be a Cash Cow for LMT

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Earlier this year when POTUS formally announced he wanted to have Congress purse creating a whole new military branch called the United States Space Force (USSF), an easy and very obvious call was that Lockheed Martin (LMT) would benefit.

Confirmation of said money train has shown up in a recent article by CNBC which reports that an internal US Air Force document from Sept. 14 (CNBC says obtained by Associated Press) indicates an initial Space Force budget of $12.9B during it’s first five years.

“The estimate is made in a memo written by Air Force Secretary Heather Wilson.” [1]

LMT is all over the board when it comes to space tech and space-related government contracts, with fingers in many pies.  Intuitively, we all know government estimates can generally be way off, so the $12.9B looks like seed money to me… there will be lots more coming from that money-tree if/when Congress approves the new branch.

[1] – https://www.cnbc.com/2018/09/17/air-force-space-force-would-cost-13-billion-over-5-years.html

[2] – https://en.wikipedia.org/wiki/United_States_Space_Force

[3] – Pic: https://flic.kr/p/21nsNMY (public domain)

Dividend Investing | Industrials

LMT Grabs Another Big Contract – $7.2B for Satellites

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Air Force GPS! [2]
It seems like Lockheed Martin (LMT) just keeps winning big contracts, the latest– $7.2 billion from the U.S. Air Force to produce up to 22 “Global Positioning System III” satellites (currently fixed price for 2, total of 32, up to 22 for this specific deal; I know… that’s a little confusing, but it all equals big bucks $$$).  When you are pulling in business orders in the billions range, stockholders are gonna be happy happy happy.  I know I am.

From Bloomberg:

“Lockheed was the sole source because Boeing Co. and Northrop Grumman Corp. decided against bidding when the Air Force — openly unhappy about Lockheed’s four years of delivery delays for the initial satellites — decided to open for competition the next group of satellites.” [1]

Looks like LMT had this one in the bag and the other biggies just threw in the towel.

Of note, some background:

“The new GPS satellites promise increased accuracy for navigation, a signal compatible with similar European satellites and improved security against cyberattacks” [1]


[1] – https://www.bloomberg.com/news/articles/2018-09-14/lockheed-wins-gps-satellite-contract-worth-up-to-7-2-billion

[2] – Pic: https://en.wikipedia.org/wiki/Global_Positioning_System